Meituan, China’s prominent on-demand service and food delivery giant, reported an average of 3.36 million monthly active delivery riders in 2024. This figure was unveiled in the company’s recently published 2024 Corporate Social Responsibility Report.

The report highlights Meituan’s substantial scale, noting that the platform served over 770 million annual transacting users and hosted 14.5 million active merchants throughout the year. These numbers underscore Meituan’s dominant position in China’s digital economy, offering a wide array of services including food delivery, hotel bookings, and travel.

Meituan also detailed the earnings of its delivery workforce, stating that high-frequency riders earned a monthly income between 6,650 yuan (US$$918)and9,344yuan(US\$$1,289). While these figures indicate significant income potential, the company continues to face scrutiny regarding the working conditions and compensation structures for its large delivery force as it expands its market presence.

🔗 Source: Yicai

🧠 Food for thought

1️⃣ China’s food delivery market shows extraordinary decade-long growth

Meituan’s journey reflects the explosive growth of China’s food delivery ecosystem, expanding from just 110 million active users in 2013 to 300 million by 2017, and now to an impressive 770 million in 2024 as reported in their CSR report.

This represents a sevenfold increase over a decade, transforming what was once a convenience service into a fundamental part of daily life for over half of China’s population.

The market’s financial trajectory is equally striking, growing from a $32 billion valuation in 2017 to approximately $208 billion today 1.

Daily delivery volumes illustrate this dramatic scale shift, with Meituan alone growing from 1.7 million daily deliveries in 2015 to 11.2 million by 2017 2, and now handling 21.9 billion orders annually in 2023 3.

The company’s expansion from purely food delivery to a comprehensive service platform mirrors broader trends in China’s digital economy, where super-apps have become the norm.

2️⃣ Delivery rider economics reveal the true cost of convenience

While Meituan reports average monthly earnings of 6,650-9,344 yuan for high-frequency riders, a closer examination of the economics reveals significant challenges in the gig model.

Meituan paid a total of $11.3 billion to approximately 7.45 million riders in 2023, which averages to just RMB 3.65 (about $0.52) per delivery 3, requiring riders to complete hundreds of deliveries monthly to reach reported income levels.

Multiple independent studies confirm the challenging economics, with researchers finding typical monthly incomes ranging from 5,000-7,000 yuan ($694-$972) 4, requiring many riders to work 12-hour shifts to meet their income needs 1.

The gap between company profitability and rider compensation is stark. Meituan’s revenue rose by 21% year-on-year to RMB 82 billion in Q2 2024, with profits reaching RMB 11 billion 3, while riders continue to face pressure to maximize deliveries for modest earnings.

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